5 things that changed for the stock market over the weekend – Gift Nifty to Israel-Hamas war

The Asian markets traded mixed on Monday morning, while the US stock indices ended higher last week.

However, the war between Israel and Hamas that erupted over the weekend is likely to weigh on the market.

On Friday, the domestic benchmark indices, Sensex and Nifty 50, ended over half a percent higher each after the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) maintained a status quo on repo rates and policy stance, in line with expectations.

RBI’s MPC unanimously decided to keep the repo rate unchanged at 6.5 per cent on Friday. The central bank also retained its policy stance as the “withdrawal of accommodation” with five out of six MPC members voting in favour of this.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — October 9

Here are key domestic and global market cues for Sensex today:

Asian Markets

Asian markets traded mixed, while the US stock futures dropped 0.7% in early Monday trade after the fresh geopolitical tensions escalated in the Middle East. The MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2%.

Japan and South Korea’s markets are closed for a holiday.

Trading in the Hong Kong stock market has been halted for the morning session after the country raised its typhoon warning to Signal 8 for Typhoon Koinu. However, Hang Seng index futures stood higher at 17,724 compared to the HSI’s last close of 17,485.98.

Australia’s S&P/ASX 200 rose 0.61% in early trading, snapping a five-day losing streak.

Meanwhile, the Gift Nifty was trading at around 19,658 as against Nifty futures’ previous close of 19,688, indicating a negative start for the Indian benchmark indices.

Also Read: Indian stocks brace for Israel-Hamas war impact

Wall Street

US stock market indices ended higher on Friday led by technology shares, with the S&P 500 and Nasdaq registering their biggest daily percentage gains since late August.

The Dow Jones Industrial Average rallied 288.01 points, or 0.87%, to 33,407.58, while the S&P 500 jumped 50.31 points, or 1.18%, to 4,308.5. The Nasdaq Composite ended 211.51 points, or 1.6%, higher at 13,431.34.

For the week, the S&P 500 rose 0.5%, the Dow eased 0.3% and the Nasdaq gained 1.6%.

Among stocks, shares of Exxon Mobil declined 1.7% after sources told Reuters that the US oil producer was in advanced talks to acquire Pioneer Natural Resources. Pioneer shares jumped 10.4%.

(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

Israel-Hamas war

The world witnessed an emergence of another geopolitical crisis on Saturday after Palestinian militants fired more than 5,000 rockets from the Gaza Strip toward Israel, killing at least 700 people and wounding several others, the worst attack on Israeli soil in decades.

In retaliation, Israeli government formally declared war and gave the green light for “significant military steps”, as the military laboured into Monday to crush fighters still in southern towns and intensified its bombardment of the Gaza Strip.

The toll passed 1,100 dead and thousands wounded on both sides, as fighting entered a third day.

Catch Live Updates on Israel-Hamas War here

Oil prices boil

Crude oil prices rallied over 4% in early Asian trade on Monday as the war between Israel and Hamas raised political uncertainty across the Middle East.

Brent crude rose $3.38, or 4.00%, to $87.96 a barrel, while US West Texas Intermediate crude was at $86.27 a barrel, up $3.48, or 4.20%.

US logs fastest hiring pace in eight months

US employment increased by the most in eight months in September as hiring rose broadly, and the jobless rate was unchanged at 3.8%, showed the Labor Department data.

Nonfarm payrolls increased by 336,000 jobs last month, the largest rise since January. The economy created 119,000 more jobs than previously reported in July and August. Payroll gains were almost double the 170,000 forecast by economists in a Reuters poll. 

Also Read: Wall Street week ahead: Investors eye inflation data, Fed minutes

The data also showed a moderation in wages, which may have been because most of the jobs added last month were in lower-paying industries, Reuters reported.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!

Updated: 09 Oct 2023, 07:22 AM IST